SEC Issues Proposed Rules Related to the Security-Based Swaps Market

December 16, 2021

The SEC has issued three proposed rules related to security-based swap transactions. They are summarized as follows:

Prohibition Against Fraud, Manipulation, or Deception in Connection With Security-Based Swaps — The reproposed new Exchange Act Rule 9j-1 would “prohibit fraudulent, deceptive, or manipulative conduct in connection with all transactions in security-based swaps, including misconduct in connection with the exercise of any right or performance of any obligation under a security-based swap.”
Prohibition Against Undue Influence Over Chief Compliance Officers — The proposed new Exchange Act Rule 15Fh-4(c) would “prohibit undue influence over the Chief Compliance Officer (CCO) of a security-based swap dealer or a major security-based swap participant.”
Position Reporting of Large Security-Based Swap Positions — The proposed new Exchange Act Rule 10B-1 would “require any person with a security-based swap position that exceeds a certain threshold to promptly file with the SEC a schedule disclosing certain information related to its position.”

Comments on the proposed rules are due 45 days after the date of their publication in the Federal Register. For more information, see the press release and fact sheet, as well as statements by SEC Chair Gary Gensler and Commissioners Caroline A. Crenshaw, Allison H. Lee, Hester M. Peirce, and Elad L. Roisman, on the SEC’s Web site.